ASML lifts guidance on demand

ASML raised its 2026 sales forecast after first-quarter results beat expectations, saying artificial intelligence chip demand is still running ahead of supply. (asml.com) The Dutch company now expects 2026 net sales of €36 billion to €40 billion, up from its January forecast of €34 billion to €39 billion, with gross margin still seen at 51% to 53%. First-quarter net sales came in at €8.8 billion and net income was €2.8 billion on April 15. (asml.com) ASML builds lithography machines, the tools chipmakers use to project circuit patterns onto silicon wafers. Its extreme ultraviolet, or EUV, systems are used to mass-produce the most advanced chips, and ASML says that technology is unique to the company. (asml.com) Chief Executive Officer Christophe Fouquet said the industry’s growth outlook is “driven by ongoing AI-related infrastructure investments,” as cloud companies and chip designers keep ordering more computing capacity. Reuters reported the stronger outlook followed better-than-expected first-quarter earnings. (asml.com) (usnews.com) That matters because ASML sits near the front of the semiconductor supply chain: when foundries and memory makers prepare for more advanced production, they buy ASML tools years before chips reach servers and consumer devices. CNBC described the company as a bellwether for chip demand because its machines are required to manufacture leading-edge semiconductors. (cnbc.com) The stronger forecast landed alongside a weaker China mix. CNBC reported system sales to China fell to 19% of ASML’s total sales in the first quarter, down from 36% in the December quarter, as export controls tightened. (cnbc.com) ASML has not been allowed to sell its EUV machines to China, and a bipartisan bill introduced in the United States last week would further restrict sales of some lower-end deep ultraviolet, or DUV, tools to Chinese chip companies. That proposal still has to move through the legislative process. (cnbc.com) Investors still focused on the near term. ASML shares fell about 6% on April 15 even after the raised outlook, as markets weighed stronger demand against tighter export rules and China exposure. (cnbc.com) For now, ASML is telling investors that the biggest force in its business is not China policy but the global build-out of artificial intelligence computing. The next test comes in the second quarter, when ASML expects sales of €8.4 billion to €9.0 billion. (asml.com)